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New Zealand: D&O policy can’t be used for Bridgecorp executive’s defense costs

December 24, 2013 - 6:00am

The New Zealand Supreme Court has handed down a decision to bar three convicted former executives of the now-defunct Bridgecorp Holdings Ltd. from accessing the company’s $20-million New Zealand ($16.4 million) director’s and officer’s policy to pay defense cost, The New Zealand Herald reported.

The funds can instead be used to satisfy some of the NZ$459 million in debt to investors that Bridgecorp. owes after its collapse in 2007. Bridgecorp's receivers had expressed concerns over the directors' access to funds for defense costs, which they said could have resulted in less insurance money available for investors.

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